There is no problem with the Umarex guns cutting holes
The problems are more to do with the standard A4 paper we use to print the targets on.
I find that any flat head (or as they are commonly known "Wad Cutters") will put a sharp, clean cut hole in a thicker medium, but in bog standard copier/printer paper the holes can tear. If I back my paper onto card (cerial boxes for example) the flat head pellets again produce clean sharp holes.
Round headed or pointed pellets produce different results. Pointed tear a hole in card thats barely visible, round heads tend to put a clean cut in part of the hole, but tear a strip at the other side of the hole.
For paper target shooting Wad Cutters/Flat head are preferable
ATB
Tony